[CC may contain inaccuracies] What's the latest with Kaiser. Yeah. Well obviously all of the group shares are suspended. Kaiser Group kinds of capital
investment. Kaiser Health and Kaiser property today that after we learned yesterday late yesterday that they missed the
payments on their wealth management products which are onshore liabilities. Now this you know Kaiser of course came into our
focus as the first Chinese developer to default back in 2015 there that big debt restructuring in 2016. And since then
they've become among Chinese developers the third biggest borrower in the dollar bond market. So they have about what 11
billion dollars of bonds outstanding dollar bonds outstanding. So this is you know another sign of the issues that are plaguing
some of these mid tier developers. And they did put out a statement
saying yesterday the company has faced unprecedented pressure on its liquidity due to these unfavorable factors that we've been
talking about for so long now such as credit rating downgrades and a challenging property market environment to say the least.
So the media in China is saying that they missed about 2 billion to
milk. Let me get my numbers correct here. Twelve point eight billion yuan two billion U.S. dollars in principal and interest
on those wealth management products. If they're not paying their onshore liabilities which is a priority of the government for
these developers what does that mean for their dollar bond holders with those eleven billion dollars and dollar bonds
outstanding. Steve I guess for some of our viewers I mean we are fairly
familiar. I wouldn't say we're super familiar with of course the likes of we're talking about it now because obviously it's in
the news there. Give us the significance though isn't simply the company or is does is it represent the sort of whack a mole that
we're trying to follow. Really which property developer is coming under stress.
Yeah. Well you talk about ever granted you talk about that kind of a case. I just think everyone's
you get to keep these track track of these things. Absolutely. OK. This is not I mean with Kaisa it's not an ever grand as far
as size and scope of their products and their liabilities. Three grand. Three hundred billion dollars that the liabilities and so
many notes and coupons that are due in the short term. And they obviously have lots of liquidity crunches and lots of assets
they could potentially sell but haven't been able to. Kaisa is maybe a second wrong. But it is not smaller like the cynics or
the cynics and the like is I said it is among developers the third biggest borrower of offshore debt at issuer. And that
definitely and as we're seeing on the markets right now with the plunging in the high yield market and the bonds. This is a
significant risk not only to the real estate industry but a symptom of the problems in the industry and something that the
Chinese authorities obviously are going to be taking a very close look at. And when it comes to ever grant it seems like
bond holders they're looking at somewhere over here at the yacht club behind me. I was not on this yacht club. It's over the
coast this way. Yeah. Know my geography. There's a few marinas here in Hong Kong. Yes. It's a 45 million U.S. dollar yacht that
is in name at least owned by the founder Mr. HOY. But he has a lot of different you know I guess his finger in many different
pies as far as the intricate confusing web of different joint ventures and affiliates and tracking his paper trail. We do know
that government authorities in China would like to see him dip into his personal fortune to pay off some of these short term
liabilities especially in wealth management products. It mean it would it would it would be a dead because of the amount of
liabilities. I'm not sure he has hundreds of billions of dollars in disposal. But again his holdings in ever grand or through a
BPI company British Virgin Islands. So it's a bit opaque as far as how much wealth he actually has. We do know he was paid about
seven billion dollars in dividends from the companies since it went public in late. What about 2009. He's also we've seen
through filings outlaid more than three point three billion dollars not only in company's shares but in bonds as well as
luxury products not just the yacht but three private jets with more than 200 million dollars to houses here in Hong Kong. And
the peak you know the peak. Yeah it's not cheap property. No it's one of the most expensive. Absolutely. In the world. That
combined with about two hundred eight million U.S. dollars. So these are not other common prosperity. These are things that I'm
sure the Chinese government would say offload these things in terms of what's next. We have some coupon payments coming up for
Evergreen next week. Yeah that's right. And that's why everything is in focus right now as far as what November 11th is
when the 30 day grace period on three different off shore bonds totaling about one hundred and forty nine million U.S. dollars.
So again the details keep on shipping week by week.